Bashir Yuguda, minister of state for finance, has blamed the N10.04 billion drop in gross revenue in December 2014 on the drop in crude oil prices which slashed government revenue from $87.8 million in October to $77.5 million in November.
Yuguda said that the situation had resulted in $62.8 million loss in revenue as well as 52 per cent loss in production volume and 31 per cent price drop-all culminating in total revenue loss from the liquefied petroleum gas (LPG) and natural gas liquids (NGL).
Explaining the zero allocation to SURE-P, Yuguda said, “We all know the prices of crude are falling and that’s why you see that zero allocation. We’ve been telling Nigerians to brace up; we’ve come up with measures, we’ve been telling Nigerians that from the month of November, we would start seeing the effect of the falling oil prices. And that’s what we are seeing now.”
The minister added that the persistence of force majeure declared by Shell since June, 2014 as well as shut down and shut in of trunks and pipelines at various terminals also had negative impact on overall revenue receipts in December.
He said revenue performance particularly the non-oil receipts was further worsened by the fact that the timeline for payment of taxes by many companies was yet to fall due.
Also speaking to journalists at the FAAC meeting, Timothy Odah, chairman, Forum of Finance Commissioners, said the current situation necessitate a clarion call for individuals and government to tighten their belt and for economic diversification.
“I think it is good for Nigeria provided that with time it (oil price) will come up because this time around, we should make our budgets-from local governments up to the federal government-rating the country as a non oil nation. That will help us such that anything we have rather than being a shock, it will be a surprise. That’s what we have to learn. It is because we depended so much on oil,” he said.
However, from the net statutory allocation distribution for the month, the federal government received the sum of N220.48 billion while the states shared N111.83 billion as well as N86.21 for the local governments.
The sum of N47.22 billion was shared among the oil and gas-producing regions under the derivation principle.

Johnson Alabi
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